Washington state has to play the “add-value” card, not “low-cost-leader” ace
That’s the headline from the Seattle Times this morning discussing why Puget Sound lost out on the Boeing factory to South Carolina.
We all look for value in the things that we buy. Old Milwaukee is a cheaper beer than Long Hammer. You can buy WAY more of it than you can that better beer for the money. But, then again, Long Hammer is a better beer. So, what do you buy? Well, that depends. On YOUR value proposition. Almost every American I know enjoys this freedom, this Liberty. The ability to tend to your individual tastes and take advantage of choices. We do it with beer, with gas and even with eye glasses.
Why wouldn’t a corporation do the same? In fact, value is one of the key considerations for corporations. If they do NOT go after the best value, you could argue that they aren’t acting in the best interest of their shareholders. Which makes this just laughable:
Boeing’s decision to establish a second 787 production line in South Carolina was a “race to the bottom” on pay punch to the solar plexus of the Puget Sound region.
Boeing didn’t decide to establish its second production line in South Carolina because of low pay. They established their second production line in South Carolina because it offered more VALUE. But Mr. Talson, contrary to his headline, hammers home the point of low pay:
After all, South Carolina’s new Boeing workers will make about $15 an hour compared with on average the $26 earned by veterans in the company’s Washington-state factories.
But wait, it gets even better. As if lower pay isn’t enough, these Southern states offer such “amenities” as :
few unions and light environmental regulations
Further, those States have *gasp*
spent billions of dollars on incentives, such as cutting taxes and providing job training.
How dare those States create tax structures such that businesses can survive and even flourish. And don’t even get me started on job training; down right repressive!
After these first few salvos, the tone of the article changes. Mostly nonsense not having to do with why South Carolina won the line and Washington lost it. But then comes this gem:
Washington workers are caught in the same downdraft that has been affecting Americans for at least 30 years: slowing growth of middle-class incomes, declining benefits and, through most of the 2000s, stagnant wages.
When you ask the Minneapolis Federal Reserve Bank, they disagree:
Whatever. Different topic for a different post. However, its stunning what people can just write. Because they want to. Simply stunning.